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By: be the change HR
May brings a lighter cycle of employment law updates across the U.S., with limited but meaningful changes at the federal and state levels. While most states reported no major activity, a few targeted updates may still affect compliance, wage planning, and employment agreements.
This month, employers should pay close attention to federal contractor wage adjustments, new paid leave benefits in Maine, and evolving restrictions on non-compete agreements in Utah. Even in a quieter month, staying informed helps maintain compliance and avoid unexpected risks.
Coverage Window: May 1 to May 31, 2026
Federal — Federal Contractor Minimum Wage Increase (Executive Order 13658)
The U.S. Department of Labor has issued its annual update to the minimum wage for certain federal contractors covered under Executive Order 13658. This adjustment applies to specific legacy contracts and may impact payroll planning for covered employers.
New rates include $13.65 per hour for non-tipped employees and $9.55 per hour for tipped workers. Employers with qualifying contracts should review wage structures to ensure compliance.
Effective/Deadline: May 11, 2026
Sources:
https://www.federalregister.gov/documents/2026/02/09/2026-02466/minimum-wage-for-federal-contracts-covered-by-executive-order-13658-notice-of-rate-change-in-effect
https://www.dol.gov/agencies/whd/government-contracts/minimum-wage
Maine — Paid Family and Medical Leave Benefits Begin
Maine’s Paid Family and Medical Leave program has officially entered its benefits phase. Eligible employees can now begin receiving paid leave benefits for qualifying leave starting May 1, 2026.
Employers should ensure they are prepared to manage leave requests and understand how this program integrates with existing policies and payroll processes.
Effective: May 1, 2026
Sources:
https://www.maine.gov/paidleave/
https://ogletree.com/insights-resources/blog-posts/maine-will-launch-pfml-benefits-in-may-2026/
Utah — Healthcare Worker Non-Compete Restrictions
Utah has enacted new legislation that restricts post-employment non-compete agreements for healthcare workers. Any non-compete agreements entered into on or after the effective date are considered void.
The law applies broadly to licensed healthcare professionals and also introduces limitations on certain non-solicitation provisions. Employers in the healthcare space should review and update their agreements accordingly.
Effective: May 6, 2026
Source:
https://virgilhr.com/legal-updates/utah-eliminates-non-competes-for-healthcare-workers/
Utah — Veterinarian Restrictive Covenant Limits
In a related update, Utah has also implemented restrictions on non-compete agreements for veterinarians. New agreements entered into on or after May 6, 2026 are generally prohibited, with limited exceptions tied to ownership interests.
Additional limits apply to non-solicitation and confidentiality provisions, making it important for veterinary practices to reassess their employment contracts.
Effective: May 6, 2026
Sources:
https://utahemploymentandlaborlaw.blogspot.com/2026/04/utah-veterinary-non-compete-law-changes.html
https://parsonsbehle.com/insights/2026-utah-legislative-update-related-to-employment-and-labor-issues
No major employment law changes were identified for the following jurisdictions:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.
Even with fewer updates this month, a few key areas deserve attention:
Taking time to review these updates can help maintain compliance and support smoother operations moving forward.
